Submitted By
Jill Velan, Parking and Mobility Services Director
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving a Valet Services Agreement with SP Plus Corporation to Operate a Universal Valet Parking Program in the Downtown Oak Park Area for One Year and Authorizing its Execution
End
Overview
Overview
On February 6, 2017 the Village Board approved a motion to extend the Valet Parking Services Agreement with SP Plus and directed staff to prepare the necessary actions for formal approval.
Body
Staff Recommendation
Aprove the Resolution.
Fiscal Impact
During the first ten months of operations, total gross parking revenue exceeded $24,000 and more than 4,500 cars were valet parked, with an average of more than 20 cars per days in the highest volume months.
Valet customers pay $5 for up to three hours and $12 for up to 10 hours of parking. Additionally, the cost of the valet program is funding by the Parking Fund of the Village, Westgate Medical Offices and the Oak Park Station developer. For FY16, the net expense to the Parking Fund was within the budgeted amount of $125,000.
The Parking Fund also supports the programs listed below to ensure convenient parking in the Greater Downtown Business Districts with estimated forgone parking revenue listed in parenthesis:
* 90 minutes free in downtown garages - ($530,000 annually)
* 60 minutes free in Avenue garage - ($70,000 annually)
* Large Volume Business Validation Program - ($300,000 annually)
* Boutique Hotel Validation Program - ($14,000 annually)
* Employee discount Program - ($148,000 annually)
The current agreement with SP+ for universal valet is $206,182 for a twelve month period. In order for the Valet Program to pay for itself without subsidy from the Parking Fund or the private sector, there would need to be 41,236 parking transactions over a one year period or 793 parking transactions/week - at the minimum charge of $5 for three hours of parking. As the chart below shows, ...
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